Tesla’s new car sales in Spain fell 36% year-on-year in April 2025, totaling 571 vehicles. This decline contrasts with a rise in EV sales from other brands in the country.

Across Europe, Tesla’s sales dropped by 37.2% in the first four months of the year, while fully EV sales in the region rose by 28%.

Sweden reported one of the steepest declines for Tesla, with an 81% drop, marking its lowest sales in nearly three years.

The European EV market has seen an influx of Chinese automakers, including Tesla’s competitor BYD.

Meanwhile, Tesla also faces decreasing demand in the US, with weak Model Y sales prompting the company to offer discounts.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ European automakers have rapidly closed the EV gap with Tesla

Tesla’s 36% sales decline in Spain reflects a broader European trend where the company saw a 30% drop in registrations in March 2025, the steepest fall among major brands 1.

Meanwhile, Volkswagen has emerged as Europe’s leading electric car brand with a 157% increase in sales during the same period 1.

The first quarter of 2025 marked the strongest quarter for battery electric vehicles on record in Europe, showing the market is healthy even as Tesla struggles 1.

While the Model Y remains the best-selling electric car, Tesla’s overall position is weakening as European consumers show increasing preference for domestic brands.

2️⃣ Market diversification signals EV industry maturation

Europe’s EV market is showing signs of segmentation, with overall battery electric vehicle sales rising 28% even as Tesla’s sales declined 37.2% 2.

This divergence indicates that European consumers are no longer treating “EV” and “Tesla” as synonymous categories, instead exploring a broader range of options including more affordable models 1.

The market is also seeing significant growth in hybrid vehicles, with hybrid-electric car sales rising sharply by 20.7% in Q1 2025, driven particularly by demand in France 2.

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